Investing Online for Dummies

410 Pages·2005·7.99 MB·English

by  Kathleen Sindell

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Investing Online
FOR
DUMmIES
‰
5
TH EDITION
by Kathleen Sindell,PhD
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Investing Online For Dummies®, 5th Edition
Published by
Wiley Publishing, Inc.
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Hoboken, NJ 07030-5774
www.wiley.com
Copyright © 2005 by Wiley Publishing, Inc., Indianapolis, Indiana
Published by Wiley Publishing, Inc., Indianapolis, Indiana
Published simultaneously in Canada
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About the Author
Kathleen Sindellis the author of Managing Your Money Online For Dummies
(Wiley, 2004), Safety Net: Protecting Your Business on the Internet(Wiley, 2002),
Loyalty Marketing for the Internet Age(Dearborn, 2000), The Unofficial Guide
to Buying a Home Online(Hungry Minds, 2000), and A Hands-On Guide to
Mortgage Banking Internet Sites, a separate directory published by Mortgage
BankingMagazine(2000, 1999, 1998, 1997). Dr. Sindell is a contributing author
to the Encyclopedia of Computer Science(Groves Dictionaries Inc., 2000) and
the online investing columnist for Investor Directmagazine (1999). She is the
author of The Handbook of Real Estate Lending(McGraw-Hill Professional
Publishing, 1996). Dr. Sindell is an expert on electronic commerce and is an
adjunct faculty member at the Johns Hopkins University MBA program. She is
the former Associate Director of the Financial Management and Commercial
Real Estate Programs for the University of Maryland, University College
Graduate School of Management & Technology.
Dr. Sindell provides consulting and publications about management, finance,
security, and real estate in the e-commerce environment. Her goal is to
improve the quality of life and economic well-being of people and business
organizations by providing information that they might not otherwise have
or understand.
She received her B.A. in Business from Antioch University, an MBA in Finance
from the California State University at San Jose, and a PhD in Administration
and Management from Walden University, Institute for Advanced Studies.
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Dedication
This book is dedicated to my dear friends Arlene Meilich and Gail Pasternack.
Author’s Acknowledgments
Investing Online for Dummies,5th Edition, illustrates the latest trends in
online investing and represents my desire to help people take control of their
finances by accessing high-quality Web-based investing information. My grati-
tude and thanks to Bob Woerner, senior acquisitions editor, for his guidance.
Development editor Mark Enochs made working on this book a joy. My appre-
ciation to Andy Hollandbeck and Teresa Artman for their excellent copy edit-
ing. It was a pleasure to work with technical editor Dan Chesler. I am also
grateful to the many folks who work behind the scenes at Wiley Publishing.
It was a delight to work with my literary agent, Carole McClendon, and all
the folks at Waterside Productions on this fifth edition of Investing Online
For Dummies.
A very special thank you to my brother-in-law, Gerald Sindell, for his pro-
found counsel on everything relating to the business of publishing.
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Publisher’s Acknowledgments
We’re proud of this book; please send us your comments through our online registration form
located at www.dummies.com/register/.
Some of the people who helped bring this book to market include the following:
Acquisitions, Editorial, Composition Services
and Media Development
Project Coordinators:Emily Wichlinski,
Project Editor:Mark Enochs Nancee Reeves
Senior Acquisitions Editor:Bob Woerner Layout and Graphics: CarlByers,
Andrea Dahl, Lauren Goddard,
Copy Editor:Andy Hollandbeck
Denny Hager, Joyce Haughey,
Technical Editor:Dan Chesler Barry Offringa, Lynsey Osborn,
Editorial Manager:Kevin Kirschner Melanee Prendergast, Heather Ryan
Media Development Manager: Proofreader: Kelly Ewing, Leeann Harney,
Laura VanWinkle Jessica Kramer, Carl Pierce
Media Development Supervisor: Indexer: TECHBOOKS Production Services
Richard Graves Special Help:Teresa Artman
Editorial Assistant:Amanda Foxworth
Cartoons:Rich Tennant (www.the5thwave.com)
Publishing and Editorial for Technology Dummies
Richard Swadley,Vice President and Executive Group Publisher
Andy Cummings,Vice President and Publisher
Mary Bednarek,Executive Acquisitions Director
Mary C. Corder,Editorial Director
Publishing for Consumer Dummies
Diane Graves Steele,Vice President and Publisher
Joyce Pepple,Acquisitions Director
Composition Services
Gerry Fahey,Vice President of Production Services
Debbie Stailey,Director of Composition Services
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Contents at a Glance
Introduction.................................................................1
Part I: Online Investing Fundamentals ...........................9
Chapter 1: Finding Investor Stuff on the Net................................................................11
Chapter 2: No Experience Required: Getting Started with Online Investing............31
Chapter 3: Making Your Money Work Harder...............................................................47
Chapter 4: Selecting an Online Broker That’s Right for You.......................................63
Chapter 5: Getting Ahold of Trading Online.................................................................81
Part II: Finding the Right Investments .........................97
Chapter 6: The Keys to Successful Internet Mutual Fund Investing..........................99
Chapter 7: Online Analysis, Buying, and Selling of Mutual Funds............................121
Chapter 8: The Basics of Stocks and Rates of Return................................................141
Chapter 9: Internet Stock Screening............................................................................159
Chapter 10: Using Company Information to Make Investment Decisions ..............175
Chapter 11: Digging Deeper: Advanced Stock Analysis ............................................195
Chapter 12: Going with Fixed-Income Securities:
Which Type of Bond Is for You?.................................................................................221
Chapter 13: Valuing, Buying, and Selling Bonds Online.............................................243
Part III: Expanding Your Investment Opportunities......263
Chapter 14: Going International Online.......................................................................265
Chapter 15: Looking for the Next Big Thing: IPOs, DPOs, and DRIPs......................281
Chapter 16: Taking the Option: Alternative Investing...............................................301
Chapter 17: The Internet and Managing Your Portfolio............................................315
Part IV: The Part of Tens...........................................337
Chapter 18: Ten Warnings About Cyberfraud.............................................................339
Chapter 19: Ten Important Selling Points ..................................................................353
Chapter 20: Ten Green Flags for Buying......................................................................365
Index.......................................................................373
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